Wednesday, 9 March 2016

1. What is the minimum capital requirement for New Banks in the Private Sector?a) Rs. 200 croreb) Rs. 300 crorec) Rs. 500 crored) Rs. 600 croree) None of these2. Many times we read a term "ECB" in financial newspapers. What is the full form of ECB?a) Essential Commercial Borrowingb) Essential Credit and Borrowingc) External Credit and Businessd) External Commercial Borrowinge) None of the above3. Which among the following banks has launched "Dhanchayat" an educational film to raise awareness on the dangers of borrowing money from unorganised sources?a) Axis b) ICICIc) HDFC d) SBIe) YES4. What is the maximum monthly pension for the subscribers under Atal Pension Yojana?a) Rs 2000 b) Rs 3000c) Rs 4000 d) Rs 5000e) None of these5. If a company which is not a non - banking financial company wants to collect public deposits, it is governed by ___ Act:a) RBI Act 1934b) Banking companies Actc) Companies Act 1956d) Central Governmente) None of the above6. Which among the following has launched a Smart Humsafar Plan, a unique plan which offers multiple benefits of savings and insurance cover for husband and wife under a single policy?a) ICICI Prudentialb) SBI Life c) NIACLd) LIC e) HDFC ERGO7. Which country launched world first Facial recognition ATM?a) China b) Japanc) US d) Canadae) Brazil8. Which type of machine is used by Business Correspondents?a) Micro ATMs b) POSc) Biometric Card Readerd) Solar empowerede) Water resistant9. Which among the following bank has tied up with Chinese ecommerce giant Alibaba to provide easier trade finance to small and medium enterprises (SMEs) in the country?a) HDFC Bankb) SBI Bankc) Canara Bankd) ICICI Bank e) Axis Bank10. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate in ____ sector.a) private, publicb) public, privatec) either a or bd) cooperative, NBFCe) None of the above11. What is the name of the platform launched by State Bank of India (SBI) that enables customers to book their foreign exchange transactions online?a) SBI eforexb) SBI emoneyc) SBI eonlined) SBI esharee) SBI ebuddy12. In CDR, "R" stands for ____.a) Ratio b) Receiptc) Regulation d) Restructuringe) Reserve13. Which of the following is not a function of General Insurance?a) Cattle Insuranceb) Crop Insurancec) Marine Insuranced) Fire Insurancee) None of the above14. The Bank for International Settlements (BIS) is the world's oldest international financial organization established on 17 May 1930. The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperationin those areas and to act as a bank for central banks. The head office of BIS is located in ___.a) Hong Kong b) Switzerlandc)China d) Mexicoe) Australia15. National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country. To be operational by the year end, the headquarter of NIIF will be located in ____.a) Mumbai b) New Delhic) Bengaluru d) Chennaie) Kolkata16. Special Drawing Rights (SDRs) are international foreign exchange reserve assets issued bya) World Bank b) WTOc) ADB d) IMFe) None of these17. Which of the following types of accounts are known as "Demat Accounts"?a) Zero Balance Accountsb) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from therec) Accounts in which shares of various companies are traded in electronic formd) Accounts which are operated through internet banking facilitye) None of the above18. According to the Socio Economic and Caste Census (SECC) which among the following states in India has highest per cent of Urban BPL households?a) Bihar b) Uttar Pradeshc) Manipur d) Jharkhande) Sikkim19. Payment of a cheque may be countermanded by the ___a) Payee b) Drawerc) True owner d) Draweee) None of these20. Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of two dozen public sector banks (PSBs). BBB will start functioning from ___.a) 31st December 2015b) 1st January 2016c) 31st March 2016d) 1st April 2016e) 1st June 201621. Identify the well known person related to Banking field in India from the following?a) Mrs. Meira Kumarb) Mrs. Kiran Shawc) Mr. Arun Jaitleyd) Dr. D Subbaraoe) All of the above22. A fixed deposit receipt is kept with the bank for its safety, is known as ___?a) Safe custodyb) Safe depositc) Lockerd) Valid safe deposite) None of the above23. Reserve Bank will issue ___bank notes with 3 additional features to aid the visually impaired in identification.a) Rs. 500 and Rs 1,000b) Rs. 100 and Rs. 500c) Rs. 50 and Rs. 100d) Rs. 10 and Rs. 100e) None of these24. Simply click a card launched by SBI special for ____.a) Cash Transferb) Online Shoppingc) Pay Utility Billsd) For Home Loanse) None of these25. Banking Companies are prohibited under Sec 8 of banking Regulation Act to sell and purchase securities. Yet Banks are selling securities (of the customer) which are under pledge as permitted by:a) Indian Contract Actb) SARFAESI Actc) Government Notificationd) Banking Regulation Acte) None of these26. Hypothecation is:a) Atransaction of conditional saleb) A legal transaction whereby goods may be made available as security for a debtc) Transfer of ownership by the borrower to the lenderd) Either a or be) None of the above27. Mortgage is a:a) Security on movable property for a loanb) Security on immovable property for a loanc) Concession on immovable propertyd) Facility on immovable propertye) Security on loan sanctioned against fixed deposits28. What is the minimum amount to be invested under Sukanya Samriddhi Scheme?a) Rs. 500 b) Rs. 1000c) Rs. 1500 d) No ceilinge) Rs. 10029. The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:a) Tax Evasionb) Money Launderingc) Terrorismd) Avoiding NPAse) Avoiding frauds in ATMs30. The SARFAESI Act 2002 empowers Banks / Financial Institutions to recover their non-performing assets (bad loans) without the intervention of the Court. In "SARFAESI" second "S" stands for ____.a) Securitisationb) Security c) Statutoryd) Share e) Saving31. The main function of an Asset Management Company is to:a) hold the securities of various schemesb) manage the funds by making investments in various types of securitiesc) hold its property for the benefit of the unit holdersd) act on behalf of SEBIe) All the above32. Global Rating Agency Fitch has downgraded Viability Rating (VR) by one notch to 'bb' of which among the following banks?a) Bank of Barodab) State Bank of Indiac) Punjab National Bankd) Canara Banke) IDBI Bank33. The Banking Codes and Standards Board of India was registered on 18th February, 2006 under which of the following RBI Act?a) Banking Regulation Actb) The Societies Registration Act, 1860c) Cooperative Societies Actd) None of the abovee) All the above34. As per the Banking Ombudsman Scheme, any person can file a complaint before the Banking Ombudsman, if the satisfied reply is not received from the bank within a period of ____.a) one month b) three monthsc) two months d) six monthse) None35. CIBIL as a credit bureau caters to:a) Consumer segmentsb) Commercial segmentsc) Both commercial and consumer segmentsd) Nationalized Banks onlye) Private Banks only36. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.a) borrowing, repob) borrowing, reverse repoc) lending, repod) lending, reverse repoe) None of the above37. Some banks are financing big projects like construction of roads, bridges etc. Financing such projects means banks are helping exactly in:a) Infrastructural Developmentb) Project Managementc) Developing core sector Industryd) Financial Inclusione) All of the above38. A rate of exchange established between any two currencies on the basis of the respective quotation of each currency in terms of a third currency is known as:a) Cross rate b) Merchant ratec) Wash rate d) Composite ratee) None of the aboveANSWERS:1) c; 2) d; 3) c; 4) d; 5) c; 6) b; 7) a; 8) c; 9) d; 10) b;11) a; 12) d; 13) e; 14) b; 15) a; 16) d; 17) c; 18) c; 19) b; 20) d;21) d; 22) a; 23) a; 24) b; 25) d; 26) b; 27) b; 28) b; 29) b; 30) b;31) b; 32) c; 33) b; 34) a; 35) c; 36) c; 37) a; 38) a.

Thursday, 9 July 2015

1. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above

3. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate
in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above

6. Expand the term LIBOR as used in financial banking sectors?
a) Local Indian Bank Offered Rate
b) London-India Bureau of Regulations
c) Liberal International Bank Official Ratio
d) London Inter Bank Offered Rate
e) None of the above

7. Which one of the following rates is NOT decided by the RBI?
a) Bank Rate
b) Repo Rate
c) Reverse Repo Rate
d) Income Tax Rates
e) Only a & b

8. When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as:
a) Participation
b) Consortium
c) Syndication
d) Multiple Banking
e) All the above

10. The first insurance company was started in India in 1818 at:
a) Kolkata
b) Chennai
c) Mumbai
d) New Delhi
e) Allahabad

11. Which one of the following is not a "Money Market Instrument"?
a) Treasury Bills
b) Commercial Paper
c) Equity Shares
d) Certificate of Deposit
e) All the above

12. The Banking Codes and Standards Board of India was registered on 18 February, 2006 under
which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above

26. The maturity period of CDs (Certificate of Deposit) issued by banks should not be less than ____ and not more than _____, from the date of issue.
a) 7 days, 6 months
b) 7 days, 1 year
c) 15 days, 6 months
d) 15 days, 1 year
e) 90 days, 180 days

31. A rate of exchange established between any two currencies on the basis of the respective quotation
of each currency in terms of a third currency is known as:
a) Cross rate
b) Merchant rate
c) Wash rate
d) Composite rate
e) None of the above

Sunday, 25 January 2015

1. A draft issued by the bank has been lost by the payee. He sends a letter to the issuing bank to stop payment. Bank will:
a) Note caution and will advice the payee to contact purchaser of the draft
b) Not act on the request
c) Stop payment
d) Performs no action
e) None of the above

3. What is Yield Curve Risk?
a) It is a line of graph plotting the yield of all maturities of a particular instrument
b) Yield curve changes its slope and shape from time to time
c) Yield curve can be twisted to the desired direction through the intervention of RBI
d) All of the above
e) None of the above

4. The biggest international financial centre in the world:
a) Frankfurt
b) Geneva
c) London
d) New York
e) Paris

5. The expansion of BIFR, in the context of the Indian Industry is:
a) Board for Industrial and Financial Reconstruction
b) Bureau for Industrial and Financial Reconstruction
c) Board for Investment and Financial Reconstruction
d) Bureau for Investment and Financial Reconstruction
e) None of these

7. Under which of the following methods of depreciation, amount of depreciation varies every
year?
a) Written Down Value Method
b) Straight Line Method
c) Amount of depreciation does not vary on year to year basis
d) Either a or b
e) None of these

9. Which of the following is true about "White Card"?
a) It is related to companies producing milk products
b) It does not carry on its face, the brand of the issuer
c) It is meant to covert blank money into the economy
d) It is a card that provides white money
e) None of these

13. The primary relationship between the banker and the customer is that of:
a) Trustee and beneficiary
b) Debtor and Creditor
c) Principal and agent
d) Lesser and lessee
e) None of these

14. A debt becomes time-barred after:
a) One year
b) Two and a half year
c) Three years
d) Five years
e) Six years

15. In the matter of handling bills of exchange for collection, the relationship between customer and
the bank is:
a) Trustee and the beneficiary
b) Principal and agent
c) Bailor and bailee
d) All of the above
e) None of the above

16. Hypothecation is:
a) A transaction of conditional sale
b) A legal transaction whereby goods may be made available as security for a debt
c) Transfer of ownership by the borrower to the lender
d) Either a or b
e) None of the above

17. Payment of a cheque may be countermanded by the ___
a) Payee
b) Drawer
c) True owner
d) Drawee
e) None of these

21. When does a person become insolvent?
a) When he left with no property of his own
b) When he declares an insolvent by the Court
c) When he terminates from a job he was holding
d) When he declares himself to be an insolvent
e) None of the above

22. When two parties make an arrangement to exchange future cash flows, it is called:
a) Options
b) Arbitrage
c) Swap
d) Futures
e) None of the above

23. Which of the following banks enjoys the reputation of being at the top in market capitalization among all the private banks?
a) ICICI Bank
b) HDFC Bank
c) Axis Bank
d) Yes Bank
e) IDBI Bank

24. "Claused Bill of Landing" is one which indicates:
a) Remaining constant in project cost
b) Escalation in Project Cost
c) Decrease in Project Cost
d) All of the above
e) None of the above

Sunday, 28 December 2014

1. Who among the following is the primary regulator of Banking business?
a) Reserve Bank of India
b) Central Government
c) State Government
d) Parliament
e) a and b both the above

2. The main business of banks is to accept deposits from the public. However, a bank can refuse to
permit opening an account on behalf of _______:
a) Undesirable persons
b) Artificial persons
c) Arrested persons
d) Convicted persons
e) All of the above

3. Banks are required to monitor transactions of suspicious nature for reporting to the authorities under anti- money laundering measures. The purpose of reporting is:
a) Combating finance of terrorism
b) To check hawala transactions
c) To check the inflow of crime money
d) To check inflow of the money earned out of sale of narcotics
e) All the above

5. If a company, which is not a non - banking financial company wants to collect public deposits, it is governed by ___ Act:
a) RBI Act 1934
b) Banking companies Act
c) Companies Act 1956
d) Central Government
e) None of the above

6. Companies whose main business is not financing or lending are permitted to accept deposits under section 45(s) of RBI Act only from:
a) Public
b) Relatives in the from of loans
c) Friends
d) All of the above
e) None

7. Every Banking company is required to use the word Bank in its name and no company other than a Banking company can use the words Bank, Banker or Banking as a part of its name as per:
a) Section 7 of Banking Regulation Act
b) Section 7 of RBI Act
c) Section 7 of SEBI Act
d) Section 7 of Nationalization Act
e) None of the above

8. In India, it is necessary to have license from the RBI for opening a new branch. This is a requirement under ____ Act
a) Section 22 of banking Regulation Act
b) Section 22 of RBI Act
c) Section 22 of NABARD
d) KYC Guidelines by RBI
e) a and b above

9. Section 6(A) of B.R. Act has given the list of ancillary services which can be rendered by a Bank under the Banking Regulation Act. in the event that a Bank wants to undertake any other services (other than the list):
a) the bank can seek authority from the RBI
b) Board of directors of that Bank can decide the business suitable to the bank
c) it can be decided by the Bank in the shareholders meeting
d) Bank can do so if that business is notified by the Central Government as the lawful business of a Banking company
e) None of the above

10. Banking Companies are prohibited under Sec 8 of banking Regulation Act to sell and purchase
securities. Yet Banks are selling securities (of the customer) which are under pledge as permitted by:
a) Indian Contract Act
b) SARFAESI Act
c) Government Notification
d) Banking Regulation Act
e) None of these

11. Section 9 of the Banking Regulation Act prohibits the banking Companies from holding any
immovable property except for its own use for a period of not more property. The RBI may extend this period for a further period of ______:
a) 2 years
b) 4 years
c) 5 years
d) 6 years
e) None of the above

12. Which of the following stock exchange is derecognized by SEBI on 19.11.2014 on the allegations of serious irregularities in its functioning?
a) Bombay Stock Exchange
b) Delhi Stock Exchange
c) Calcutta Stock Exchange
d) Bangalore Stock Exchange
e) None of the above

13. Which of the following is not a function of General Insurance?
a) Cattle Insurance
b) Crop Insurance
c) Marine Insurance
d) Fire Insurance
e) Medical Insurance

14. Liability- side of the balance-sheet comprises:
a) Capital and reserve
b) Long-term liabilities
c) Current liabilities
d) All of the above
e) None of the above

15. Minimum cash reserves fixed by law constitute ___
a) A percentage of aggregate deposits of the bank
b) A percentage of aggregate loans and advances of the bank
c) A percentage of capital & reserves of the bank
d) All of the above
e) None of these

16. Which of the following organizations/ agencies has sought an emergency fund of Rs.1000 crore
from banks to tackle acute liquidity crisis, which is coming in the way to give loans to micro borrowers?
a) Regional Rural & Cooperative Banks
b) RBI
c) Micro Finance Institutions
d) NABARD
e) None of the above

17. Which of the following types of accounts are known as "Demat Accounts"?
a) Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No
other business can be conducted from there
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
e) None of the above

2. In the recent months, Indian Rupee depreciated heavily against US Dollar. Rupee depreciation means?a) Value of Rupee decreasing against a basket of currenciesb) Less number of Rupees per US Dollarc) More number of Rupees per US Dollard) Less number of Dollars per Rupeee) None of the above

4. Food Security Bill is recently passed by Parliament. What does the Food Security Bill intend to achieve?a) At least 3kg of food grains per person per month to be given to general category households, at prices not exceeding 50% of Minimum Support Price.b) Up to 75% of the rural population and up to 50% of urban population are to be covered under Targeted Public Distribution System.c) Children aged six months to 14 years would get take-home ration or hot cooked food.d) The oldest adult woman in each house would be considered the head of that househole when issuing the ration card.e) All of the above

6. In India, Capital Markets are regulated by?a) Securities and Exchange Board of Indiab) Reserve Bank of Indiac) State Bank of Indiad) International Monetary Funde) None of the above

7. RAND is the currency of ?a) China

b) Japan

c) North Korea

d) South Africa

e) None of the above

8. Recently RBI took several steps to control Rupee depreciation. Reason(s) for to Rupee depreciation?a) Exports become costlierb) Imports become costlierc) Imports become cheaperd) Both (a)&(c) e) None of the above

19. As per findings of the recent Raghuram Rajan Committee report which State is the most developed?a) Kerala

b) Goa

c) Gujarat

d) Tamilnadu

e) None of the above

20. As per the insurance bill, 2013, Foreign Investors can hold up to?a) 51% of the capital in an Indian insurance companyb) 39% of the capital in an Indian insurance companyc) 49% of the capital in an Indian insurance companyd) 29% of the capital in an Indian insurance company

e) None of the above

21. Statutory Liquidity Ratio (SLR) refers to the amount that the commercial banks require to maintain with RBI. What are the permitted SLR investments?a) Only Gold

b) Gold or Govt approved Securities

c) Only Govt approved Securitiesd) Only Cash

e) None of the above

22. Direct Taxes Code (DTC) is intended to be introduced in the monsoon session of Parliament. DTC seeks to replace?a) Indian Contract Act

24. In July 2013, SEBI Act was amended to curb Ponzi schemes. Ponzi Scheme means?a) Name of a Mutual Fund Scheme to earn higher returnsb) Collective investment Schemes floated by fly by night operatorsc) Name of a Bank Deposit Productd) Name of a Health Insurance schemee) None of the above

25. The minimum rate of Interest charged by a Bank from Customers on the loans is?a) Base Rate

b) Bank Rate

c) Prime Rate

d) Prime Lending Rate

e) None of the above

26. Which of the following is NOT true with regard to FCNR Accounts?a) NRIs can open the Accountb) Can be opened in 'Permitted Currency' onlyc) Minimum Term is 1 yeard) Maximum Term 5 yearse) None of the above

27. REPO rate means?a) Rate at which the RBI will borrow from the banksb) Rate at which banks will borrow from other banksc) Rate at which the RBI lends to banksd) Rate at which banks lend to customerse) None of the above

28. Fiscal Deficit Refers to?a) The difference between the government's total expenditure and its total receipts(including borrowing)b) The difference between the government's total expenditure and its total receipts(excluding borrowing)c) The difference between the government's Tax collections and Salary paymentsd) The difference between the government's Tax collections and government's Borrowings

e) None of the above

29. "DAX" is the stock market in?a) Germany

b) USA

c) France

d) Hongkong

e) None of the above

30. Which of the Public Sector bank tag line "India's International Bank" ?a. SBI

b. PNB

c. ICICI

d. HDFC

e. BOB

31. Which bank has launched "travel card" for students joining abroad?a. SBI

b. PNB

c. ICICI

d. HSBC

e. ICICI

32. Who is the Chairman of the committee set up to scrutinize applications for new Bank licenses?a) Usha Thorat

b) Bimal Jalan

c) C B Bhave

d) S Damodaran

e) None of the above

33. Who is the World Bank President?a) Christine Legrade

b) Jim Yong Kim

c) Raghuram Rajan

d) Monteksingh Ahluwalia

e) None of the above

34. Ben Bernanke is the Chairman of Federal Reserve. What is Federal Reserve?a) Central Bank of UK

38. What is a stale cheque?a) A cheque issued without drawer's signature.b) A cheque with only signature of the drawer.c) A cheque which has completed 3 months from the date of its issue.d) Any one of the above.

e) None

39. Interest on savings bank account is now calculated by banks on?a) Minimum balance during the monthb) Minimum balance from 7th to last day of the monthc) Minimum balance from 10th to last day of the monthd) Maximum balance during the monthe) Daily product basis

40. Largest shareholder (in percentage shareholding) of a Nationalized bank is ?a) RBI